How Forex Brokers Make Money? ☝
forextradingkey May 20th. 2021, 4:10pm★ How do forex brokers make money?
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How do forex brokers make money? Have you ever wondered how your CFD broker or spread betting provider makes money?
These brokers typically have big infrastructure costs, technology costs, staff costs, marketing costs..etc yet they still seem to make decent profits. How do they do it?
The first one is the spread – this will be in pips if we’re talking forex. With major pairs the bid-offer spread will be quite tight but spreads will widen for the more exotic pairs.
Number 2 is overnight financing that the broker will charge you for holding positions overnight. You will be charged a small fee for each day that you hold onto the trade. The longer you hold an open trade, the more you will be charged.
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May 20th, 2021 at 5:05 pm
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May 20th, 2021 at 5:33 pm
Can anybody explain me what if Dave takes trade with 2000 lot i didn't understand what is happening then.
May 20th, 2021 at 5:35 pm
If dealing desk broker takes the other side of trade isn't that possible lose if his client were right? For example if some trader buys some currency and the broker takes the opposite side(sell) and price rises does that mean that broker lost his money?
May 20th, 2021 at 5:58 pm
I love this man especially the way he speaks and all. But for those of you who are in Asia and have difficulty to understand him speak. You could probably slow down the playback speed to 0.75x 😁
May 20th, 2021 at 6:22 pm
Don't part with your illusions;when they are gone you may still exist, but you have ceased to LIVE…love great's from Germany
May 20th, 2021 at 6:25 pm
Your terminologies are for people who are used to the market
May 20th, 2021 at 6:32 pm
Dealers also makes money in the rollover fees that they charge and they can change the fees anytime they want.
Most dealers today are so greedy that they charge a rollover fees on both BUY and SELL positions.
May 20th, 2021 at 6:35 pm
Great content, which broker do you recommend?
May 20th, 2021 at 7:22 pm
Hi!
One of my friends joined the fx company as a sales executive, he told me a strange thing that he gets paid both on In and Out of a trade e.g if the eurusd spread is 1 pip he gets paid a fixed percentage of 20 Dollars. Is this possible? how broker charge us spread twice? Please explain.
Big time fan, long time follower.
Thanks
May 20th, 2021 at 7:44 pm
Great video!
May 20th, 2021 at 7:49 pm
cool interessant
May 20th, 2021 at 8:00 pm
Thank you for the awesome explanation! One thing I would like to get clarified if possible: how come brokers are able to leverage all those individual trader's deposits and still make a profit from it? It seems to me that using leverage to "borrow" money from the brokers would put brokers at a very high risk if the price moves against the trader's forecast. I understand most of the trades get cancelled-out by traders on both sides (buying vs selling), but by using more money than is actually deposited on trader's accounts shouldn't that make the broker lose money? Still can't figure out how that part works.
May 20th, 2021 at 8:23 pm
what are your comments on avatrade. can they be trusted?
May 20th, 2021 at 8:48 pm
There are too many retail traders who do courses and trade for years and are never taught this, but in my mind this is absolutely critical knowledge.
May 20th, 2021 at 9:11 pm
Maybe we can discuss again on TRADING THE INTEREST RATE DIFFERENTIAL (carry trade).
May 20th, 2021 at 9:26 pm
Hi what do you think of FX pro as a broker
May 20th, 2021 at 10:00 pm
I can tell it's going to be a good one when I see a cartoon character on the whiteboard. 😀
May 20th, 2021 at 10:36 pm
brilliant as ever
May 20th, 2021 at 10:57 pm
is there any chance you’re able to produce a video on fading a trade (in depth), great video 👍🏻 📈
May 20th, 2021 at 11:38 pm
Love it